- China will impose a 13% sales tax on contraceptives starting January 1, while exempting childcare, marriage-related, and elderly care services from VAT to encourage higher birth rates.
- The tax overhaul aims to address China’s shrinking population and aging society, as birth rates have halved over the past decade.
- The new contraceptive tax has sparked concerns about increased unwanted pregnancies, HIV rates, and public ridicule, with many saying higher condom prices won’t persuade them to have more children.
- High costs of raising children, economic uncertainty, and work-life challenges remain major barriers for young Chinese couples considering having more children.
- Critics warn that making contraception more expensive could lead to risky behavior among financially struggling groups, such as students.
Source: bbc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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